We offer a Free Valuation service for Executors and prepare Written Valuations for Probate purposes on Jewellery, Watches, Gold, Paintings, Silver, works of art and collectors’ items, together with any general household contents, to provide the information required to complete the IHTM10041 – IHT400 forms issued by HMRC regarding the valuation of jewellery, household and personal goods
When someone dies, His Majesty’s Revenue and Customs (HMRC) need to know how much that individual was worth at the time of their death to calculate if any inheritance tax is payable. Proving the value of someone’s estate is referred to as a ‘Probate’ valuation.
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has died.
There’s normally no Inheritance Tax to pay if either the value of your estate is below the £325,000 threshold or if you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club.
You may still need to report the estate’s value even if it’s below the threshold.
If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren, your threshold can increase to £500,000.
If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die.
The standard Inheritance Tax rate is 40% and is charged on the part of your estate that’s above the threshold, and this is why it’s important that only items that were the property of the deceased are valued and that they are valued at the correct level.
A VALUATION THAT IS HIGHER THAN IT SHOULD BE, WILL RESULT IN MORE TAX BEING PAID !
DO NOT USE VALUATIONS FOR INSURANCE.
Valuations for insurance purposes are far higher than those required for Probate or Inheritance Tax Assessment, and if used, can result in higher levels of tax being paid to HMRC.
For example, if your estate is worth £500,000 and your tax-free threshold is £325,000, the Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000), so a tax bill of £70,000. Put another way, if the estate concerned is ‘Taxable’, then for every £1,000 of value above the threshold, £400 will need to be given to the State.
The individual given ‘Grant of representation’ or who has been appointed as ‘Executor’ of the deceased person’s estate will be required to obtain professional valuations for all items considered to be worth £1,500 or more.
We undertake valuations nationwide, including the London and surrounding areas and across the South West of England, encompassing Exeter, Torbay, Plymouth, Truro, Taunton, Barnstaple, Bournemouth and Bristol.